3Ware 1999 Annual Report Download - page 33

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In April 1998, the Company acquired Ten Mountains Design, which designs and develops high-bandwidth analog devices for
communications equipment suppliers and optical module manufacturers. The purchase price was approximately $330,000 and
resulted in recoding intangible assets of approximately $280,000, which will be amortized over three years. The financial state-
ments include the results of operation for Ten Mountains Design from the date of acquisition.
3. CERTAIN FINANCIAL STATEMENT INFORMATION
March 31,
1998 1999
Inventories (in thousands):
Finished goods $1,817 $ 975
Work in process 5,161 7,688
Raw materials 1,207 1,150
$8,185 $9,813
March 31,
1998 1999
Property and equipment (in thousands):
Machinery and equipment $25,983 $34,413
Leasehold improvements 7,476 7,641
Computers, office furniture and equipment 13,219 16,654
46,678 58,708
Less accumulated depreciation and amortization (29,460) (35,580)
$17,218 $23,128
March 31,
1998 1999
Other accrued liabilities (in thousands):
Income taxes payable $ 888 $3,329
Accrued merger-related costs — 1,893
Other 1,456 1,985
$2,344 $7,207
The cost and accumulated amortization of machinery and equipment under capital leases at March 31, 1999 were approxi-
mately $10.5 million and $8.5 million, respectively ($10.0 million and $7.2 million, at March 31, 1998, respectively).
Amortization of assets held under capital leases is included with depreciation expense.
During the years ended March 31, 1997, 1998 and 1999, the Company earned interest income of $627,000, $1,252,000 and
$3,992,000, respectively, and incurred interest expense of $656,000, $381,000 and $542,000, respectively.
4. LONG-TERM DEBT
During fiscal year 1999, the Company had an equipment line of credit with a bank, which expired on March 31, 1999. Borrowings
of $7.1 million under the line of credit were converted into term notes, with payments totaling $141,000, payable over 53 to 60
months, and interest rates between 6.44% to 7.42%. At March 31, 1999, $6.3 million was outstanding on the notes.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
31
1999
AMCC